All eyes on CPI.

Today's PPI data came in slightly above forecast, which only adds credence to the higher for longer narative. I have read a couple of articles suggesting tomorrow's CPI data may be a little softer than forecast, thanks to the decline in the price of oil. Two weeks ago, with oil over $90 per barrel, the fear was that if the price rose much higher, it would once again cause higher inflationary pressure. But for now, the market breaths a sigh of relief and all eyes are on tomorrow's CPI print. Today's FOMC minutes have only re-affirmed the higher for longer rative. The question is, how much higher and for how long? For now the market is content with higher yields, in the thought that it's the equivalent of a final hike by the FED. I'm currently of the opinion that short JPY is the only trade in town, based on interest rate differential / potential soft landing. As my trade from yesterday is still running, my hands are tied in terms of placing a trade at the moment but if I wasn't already in the market I'd be looking at short yen opportunities. Although I wouldn't hold any risk during the CPI release.